559 jobs saved as management buyout team acquires Arjowiggins
Tuesday September 24, 2019
Jobs saved as MBO team acquires business and assets of Arjowiggins' UK paper business from FRP
Partners Geoff Rowley, Iain Fraser, Tom MacLennan and Phil Reynolds, Joint Administrators of Arjowiggins Fine Papers Limited and Arjowiggins Chartham Limited, have sold the business and assets of both companies in a deal which secures 559 jobs across the UK.
The purchase, which is for an undisclosed sum, has been made by subsidiaries of a new venture, Creative Paper Holdings Limited, which has been formed by a management buyout team for the purposes of the deal.
All staff are transferring with immediate effect. The jobs saved by location are:
- Stoneywood, Aberdeen – 450
- Chartham, Kent – 82
- Basingstoke – 27
Arjowiggins Fine Papers Limited operated the Stoneywood plant in Aberdeen, which has manufactured fine and custom papers since 1770, and an administration centre in Basingstoke. Arjowiggins Chartham Limited operated the Chartham Mill in Chartham, Kent which has manufactured high-quality translucent papers since 1938.
Funding for the deals has been provided through investment by the management buyout team, lending facilities, and loan and equity finance from Scottish Enterprise.
Jonathan Mitchell comments: “We are absolutely delighted to have secured the future of a strong and sustainable business which has such a long heritage in the UK. Arjowiggins Creative Papers has world-renowned market-leading brands and products and a passionate and talented team. We are looking forward to taking steps to further strengthen the business and continue to provide first class products and customer service to our clients.
“The last nine months has been an unsettling time for the company and we are extremely grateful to the administrators, FRP Advisory, for having allowed the business to continue to trade while we found a workable solution. The support we have had from our staff, customers, suppliers and the Scottish Government has been incredible and without them this deal would not have been possible. There has been a real combined will to keep this historic business alive.”
Geoff Rowley, Joint Administrator and Partner said: “We are delighted to have concluded a deal with the management buyout team that has saved the jobs of 559 highly skilled staff across the UK. It has been an extremely challenging time for everyone. During the last eight months the backing we have received from the staff, unions, suppliers, customers and local communities has been crucial, to keep the business trading in order to maximise the chances of a successful management buyout bid and we would like to thank them for their support to save the businesses. We wish the new management team and the staff every success with their plans for the future.”